US Labour Department Heads To Clear The Status Of Gig Workers

The United States labour department has proposed redefining the status of gig employees in the country. The step is expected to influence the business model of companies like Lyft, Uber and DoorDash that depend on gig workers to run their businesses. The redefinition of the ‘gig worker’ will help them avail all the benefits and compensation for working in any organisation; such as medical coverage, leave, sick leave, etc., eventually increasing the company's cost. 

The newly proposed law will replace the old rule that allowed employees who operate their businesses or have the ability to work for competing companies, such as drivers who work for Uber and Lyft, to be treated as contractors/contract workers. 

The new law will include factors such as the tenure of the worker at a company, the degree of control the employer has over the employee, as well as the extent to which their work is integral to the business. The share prices of companies that employ gig workers took a hit. Uber and Lyft shares ended the formal day down by over 10 per cent.